UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Sedek Jantan said Trump confirmed that 25% tariffs on Mexico and Canada, along with an additional 10% tariff on China, would take effect on March 4 as planned.
He said despite broader market weakness on Bursa, banking and agricultural stocks demonstrated relative resilience amid the sell-off.
“Sector-wise, the technology index experienced the biggest loss in today’s trade by almost 5%, followed by the consumer products and services index.
“In contrast, the financial services index was the only sector index to record gains, reflecting strong investor interest in banking stocks amid prevailing market uncertainties,” he told Bernama.
He added the full-year 2024 financial results for the banking sector revealed that most banks reported earnings in line with expectations, underscoring the sector’s stable fundamentals despite ongoing macroeconomic uncertainties.
“This resilience is likely to attract investors seeking defensive positioning, prompting a shift of capital towards value-oriented sectors such as banking,” he noted.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said key markets across regions saw mostly negative showings as investor sentiment was affected by a heavy sell-off in US tech stocks, particularly Nvidia.
“Despite posting better-than-expected earnings, Nvidia’s profit margins are a ‘little concerning’,” analysts said.
“As for the local bourse, the benchmark index, which hovers at the 1,570-1,580 level, has remained in a consolidation phase, weighed down by the absence of fresh catalysts and persistent foreign outflows,” Thong said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 11.90 points to 1,574.70 from yesterday’s close of 1,586.60.
The market bellwether opened 4.63 points lower at 1,581.97, its intraday high, and slipped to an intraday low of 1,573.82 in the morning trading session.
On the broader market, decliners overwhelmed gainers 864 to 257, while 378 counters were unchanged, 878 untraded, and 67 suspended.
Turnover surged to 4.39 billion units worth RM6.45 billion from 2.89 billion units worth RM2.45 billion yesterday.
Bursa heavyweights Maybank rose 6 sen to RM10.72, Public Bank and Tenaga Nasional added 4 sen to RM4.53 and RM13.60, respectively, IHH Healthcare increased 14 sen to RM7.45, and CIMB dropped 41 sen to RM7.81.
As for the actives, Genting Malaysia dipped 46 sen to RM1.90, Inari Amertron sank 12 sen to RM2.07, while MyEG Services and Gamuda slipped 8 sen each to 87.5 sen and RM4.36, respectively.
On the index board, the FBM Emas Index slumped 183.63 points to 11,736.32, the FBMT 100 Index tumbled 170.39 points to 11,496.57, the FBM Emas Shariah Index shrank 184.01 points to 11,411.79, the FBM 70 Index plummeted 580.27 points to 16,636.63, and the FBM ACE Index slid 66.98 points to 4,756.99.
By sector, the industrial products and services index eased 3.78 points to 158.35, the energy index trimmed 13.06 points to 754.14, and the financial services index decreased 89.49 points to 19,326.95, but the plantation index was 27.85 points firmer at 7,609.70.
The Main Market volume advanced to 3.08 billion units worth RM6.22 billion from 1.65 billion units worth RM2.21 billion yesterday.
Warrants turnover declined to 895.42 million units worth RM86.33 million against 914.73 million units worth RM127.51 million previously.
The ACE Market volume expanded to 409.1 million units valued at RM139.8 million versus 320.5 million units valued at RM107.68 million yesterday.
Consumer products and services counters accounted for 758.54 million shares traded on the Main Market, industrial products and services (438.16 million), construction (238.43 million), technology (594.21 million), SPAC (nil), financial services (253.11 million), property (187.23 million), plantation (47.87 million), REITs (48.85 million), closed/fund (3,800), energy (267.04 million), healthcare (97.09 million), telecommunications and media (59.83 million), transportation and logistics (36.38 million), utilities (59.71 million), and business trusts (27,800).